Question

QUESTION 17

[Table 2] This firm will maximize its profit if it produces at the point when:

	a.	Profit is maximized.
	b.	Total revenue is maximized.
	c.	Total Cost is minimized.
	d.	All of the above
	e.	None of the above

4 points

QUESTION 18

[Table 2] This firm will maximize its profit if it produces at the point when:

	a.	Profit is maximized.
	b.	Marginal cost is equal to marginal revenue
	c.	Firm cannot be better off by producing more or less quantity
	d.	A quantity of 13 units
	e.	All of the above

4 points

QUESTION 19

[Table 2] This firm will maximize its profit if it produces the following quantity:

Table 2

-1	-2	-3	-4	-5	-6	-7
	Quantity Sold	Marginal Revenue	Marginal	Total	Total	Profit
Price			Cost	Cost	Revenue
$10	10			80	$100	$20
$10	11	(A)	8	88	$110	$22
$10	12	(B)	(E)	97	(G)	(I)
$10	13	(C)	(F)	107	(H)	(J)
$10	14	(D)	11	118	$140	$22

	a.	$9
	b.	$10
	c.	$11
	d.	$13
	e.	$14

4 points

QUESTION 20

[Table 2] If price increases from $10 to $11, this firm will maximize its profit if it produces the following quantity:

Table 2

-1	-2	-3	-4	-5	-6	-7
	Quantity Sold	Marginal Revenue	Marginal	Total	Total	Profit
Price			Cost	Cost	Revenue
$10	10			80	$100	$20
$10	11	(A)	8	88	$110	$22
$10	12	(B)	(E)	97	(G)	(I)
$10	13	(C)	(F)	107	(H)	(J)
$10	14	(D)	11	118	$140	$22

	a.	$9
	b.	$10
	c.	$11
	d.	$12
	e.	$14

4 points

QUESTION 21

A perfectly competitive firm should increase its level of production as long as

	a.	total revenue is less than total cost.
	b.	the total revenue curve is rising.
	c.	marginal revenue is greater than marginal cost.
	d.	the marginal revenue curve is rising.